BILL NUMBER: AB 2840	CHAPTERED  09/19/00

	CHAPTER   489
	FILED WITH SECRETARY OF STATE   SEPTEMBER 19, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 16, 2000
	PASSED THE ASSEMBLY   AUGUST 22, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   JUNE 21, 2000
	AMENDED IN SENATE   MAY 24, 2000
	AMENDED IN ASSEMBLY   APRIL 6, 2000

INTRODUCED BY   Committee on Public Employees, Retirement and Social
Security (Correa (Chair), Pescetti (Vice Chair), Briggs, Honda, and
Knox)

                        MARCH 2, 2000

   An act to amend Sections 20320, 20322, 20324, 20325, 21006, 21007,
21008, 21013, 21020, 21021, 21023, 21023.5, 21024, 21027, 21029,
21030, and 21031 of, and to add Article 6 (commencing with Section
21050) to Chapter 11 of Part 3 of Division 5 of Title 2 of, the
Government Code, relating to public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2840, Committee on Public Employees, Retirement and Social
Security.  Public employees' retirement:  service credit costing.
   Under the Public Employees' Retirement Law, service retirement
allowances are calculated, in part, based on years of credited
service.  Members and, in one circumstance, retirees of the Public
Employees' Retirement System may, under existing law, elect to
receive service credit for public service, as defined, and other
types of excluded service, as specified, subject to the payment of
additional contributions, as specified.
   This bill would revise and recast the provisions relating to the
calculation and payment of those additional contributions and make
related technical changes.  The bill would require the Board of
Administration of the system to inform members of certain rights
under the bill's provisions, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 20320 of the Government Code is amended to
read:
   20320.  (a) A person directly appointed by the Governor, without
the nomination of any officer or board, or directly appointed by the
Attorney General, Lieutenant Governor, Controller, Secretary of
State, Treasurer, or Superintendent of Public Instruction exempt from
civil service under Article VII of the California Constitution,
except those appointed pursuant to subdivision (i) of Section 4
thereof, is excluded from membership in this system unless he or she
files with the board an election in writing to become a member.
   (b) Upon electing to become a member, the person may further elect
at any time prior to retirement to receive service credit for his or
her prior, excluded state service by making the contributions as
specified in Sections 21050 and 21051.
  SEC. 2.  Section 20322 of the Government Code is amended to read:
   20322.  (a) An elective officer is excluded from membership in
this system unless the officer files with the board an election in
writing to become a member.  Upon electing to become a member, the
officer may further elect at any time prior to retirement to receive
service credit for his or her prior, excluded service by making the
contributions as specified in Sections 21050 and 21051.
   (b) As used in this part, "elective officer" includes any officer
of the Senate or Assembly who is elected by vote of the members of
either or both of the houses of the Legislature, and any appointive
officer of a city or county occupying a fixed term of office, as well
as officers of the state or contracting agencies elected by the
people, and persons elected to a city council or a county board of
supervisors.
   (c) Notwithstanding any other provision of subdivision (a) or (b),
elected or appointed officers of a county superintendent of schools,
school district, or community college district, or of a contracting
agency, who serve on public commissions, boards, councils, or similar
legislative or administrative bodies are excluded from membership in
this system.  This exclusion shall only apply to those elected or
appointed officers, other than city or county officers, who are first
elected or appointed to an office on or after July 1, 1994, or who
are elected or appointed to a term of office not consecutive with the
term of office held on June 30, 1994.  For city or county elected or
appointed officers, this exclusion shall only apply to those
officers who are first elected or appointed to an office on or after
January 1, 1997, or who are elected or appointed to a term of office
not consecutive with the term of office held on December 31, 1996.
This exclusion shall not apply to persons elected to a city council
or county board of supervisors.
   (d) Any person holding the office of city attorney or the office
of assistant city attorney, whether employed, appointed, or elected,
is excluded from the definition of "elective officer" as defined in
subdivision (b).  This subdivision shall apply only to persons first
employed, elected, or appointed on or after July 1, 1994, or
following any break in state service while serving in the office if
the office was held on June 30, 1994.
   (e) In accordance with Section 20125, the board shall be the sole
judge of which elected or appointed positions qualify the incumbent
as an "elective officer" in this system under this section.
   (f) Notwithstanding any other provision of law, with respect to
elective officers of contracting agencies, payment by a contracting
agency of employer contributions and any other amounts for employer
paid benefits under this system shall not be construed as receipt of
salary or compensation by the elective officer for purposes of any
statutory salary or compensation limitation.
  SEC. 3.  Section 20324 of the Government Code is amended to read:
   20324.  (a) An employee of the Senate or the Assembly, or the
respective committees thereof, whose salaries or wages are paid from
the Senate Operating Fund or the Assembly Operating Fund or the
Operating Funds of the Assembly and Senate, shall be deemed a
"legislative employee."  A legislative employee is excluded from
membership in this system unless he or she files with the board an
election in writing to become a member.  The election shall not be
required of a legislative employee who was a member of this system on
October 1, 1963.
   (b) Upon electing to become a member, a legislative employee may
further elect at any time prior to retirement to receive service
credit for his or her prior, excluded legislative service and he or
she shall have the option as to how much of that prior legislative
service is to be credited.  The legislative employee shall make
contributions to this system as specified in Sections 21050 and 21051
for the previous service as a legislative employee for which he or
she desires to receive service credit.
  SEC. 4.  Section 20325 of the Government Code is amended to read:
   20325.  (a) A county superintendent of schools, a school district,
a community college district, or a contracting agency, whose
respective resolution or contract contains an election to be subject
to this section, may offer to its part-time employees whose service
is less than the minimum service prescribed by paragraph (2) of
subdivision (a) of Section 20305 the option to elect at any time to
become a member by filing an election in writing with the board to
become a member.  An election by a county superintendent of schools,
a school district, or a community college district to be subject to
this section shall subject all of its employees whose service is less
than the minimum service prescribed by paragraph (2) of subdivision
(a) of Section 20305 to mandatory social security coverage but shall
not, in and of itself, affect any other county superintendent of
schools, school district, or community college district with respect
to any social security coverage of employees of the other county
superintendent of schools, school district, or community college
district.
   (b) If a part-time employee elects to become a member, he or she
may further elect at any time prior to retirement to receive service
credit for past service that was less than the minimum service
prescribed by paragraph (2) of subdivision (a) of Section 20305 by
making the contributions as specified in Sections 21050 and 21051.
   (c) This section shall not apply to those part-time employees of
any contracting agency nor to any contracting agency until the
contracting agency elects to be subject to this section by amendment
to its contract with the board made pursuant to Section 20474 or by
express provision in its contract with the board.
   (d) This section shall not apply to those part-time employees of
any county superintendent of schools or school district or community
college district nor to any county superintendent of schools or
school district or community college district until the county
superintendent of schools, the school district, or community college
district, elects to be subject to this section by adopting a
resolution to that effect and transmitting that resolution through
the county superintendent of schools to the board.  Notwithstanding
any specified effective date in a resolution, the resolution shall
not become effective until it is received by this system.
  SEC. 5.  Section 21006 of the Government Code is amended to read:
   21006.  (a) "Leave of absence" also means any time during which a
state member was excused from performance of his or her duties on
approved leave for the purpose of further education.  Any member
electing to receive service credit for that leave of absence shall
make the contributions as specified in Sections 21050 and 21052.
However, any eligible member who applies to make that election
between January 1, 2001 and December 31, 2003, may, instead of making
those contributions, make the payment calculated under this article
as it read on December 31, 2000, which payment shall be made in the
manner described in Section 21050.
   (b) Credit granted under this section may not exceed two years.
   (c) This section shall be applicable to persons who are members or
became members of this system on and after January 1, 1975.
  SEC. 6.  Section 21007 of the Government Code is amended to read:
   21007.  "Leave of absence" also means any time during which a
member is granted an approved leave for the purpose of service with a
university; college; local, state, federal or foreign governmental
agency; or nonprofit organization, if he or she returns to employment
within the terms and conditions under which the leave was granted.
A member may elect to receive service credit for that leave of
absence at any time prior to retirement by making the contributions
as specified in Sections 21050 and 21052.  However, any eligible
member who requests costing of service credit between January 1,
2001, and December 31, 2003, may, instead of making those
contributions, make the payment calculated under this article as it
read on December 31, 2000, which payment shall be made in the manner
described in Section 21050.  In no event shall a member receive
service credit in excess of two years for each approved leave of
absence.
  SEC. 7.  Section 21008 of the Government Code is amended to read:
   21008.  Time during which a member is excused from performance of
his or her duties, whether or not he or she is required to perform
any portion of those duties during that time, and for which he or she
receives compensation, but in an amount less than the full
compensation earnable by him or her while performing his or her
duties when not so excused, such as sabbatical leave, shall be
credited as service in the proportion that the compensation paid to
the member bears to the full compensation that would be earnable by
him or her while performing his or her duties on a full-time basis.
However, the member shall receive full-time credit for the time if
after returning to the employment from which he or she was excused
and at any time prior to retirement he or she elects to, and does,
make the contributions as specified in Sections 21050 and 21052.
However, any eligible member who requests costing of service credit
between January 1, 2001, and December 31, 2003, may, instead of
making those contributions, make the payment calculated under this
article as it read on December 31, 2000, which payment shall be made
in the manner described in Section 21050.
  SEC. 8.  Section 21013 of the Government Code is amended to read:
   21013.  "Leave of absence" also means any time during which a
member is granted an approved maternity or paternity leave up to one
year and returns to employment at the end of the approved leave for a
period of time at least equal to that leave.  Any member electing to
receive service credit for that leave of absence shall make the
contributions as specified in Sections 21050 and 21052.  This section
applies to both past and future maternity or paternity leaves of
absences by members of the system.
  SEC. 9.  Section 21020 of the Government Code is amended to read:
   21020.  "Public service" for purposes of this article means the
following:
   (a) The period of time an employee served the state, a school
employer, or a contracting agency prior to becoming a member, when
the service was rendered in a position in which the employee was
excluded provided one of the following conditions is met:
   (1) The position has since become subject to compulsory membership
in this system.
   (2) The employee was excluded because the employee was serving on
a part-time basis.
   (3) The employee was excluded because the employee failed to
exercise the right to elect membership under this part.
   (b) Employment in the State Emergency Relief Administration or the
State Relief Administration, regardless of the source of the
compensation paid for that employment.
   (c) Employment as an academic employee of the University of
California prior to October 1, 1963.
   (d) Employment by the state in which the person was not eligible
for membership in this system if the ineligibility was solely because
his or her compensation was paid from other than state-controlled
funds.  However, time spent in work as a work relief recipient under
programs such as, but not limited to, the Works Progress
Administration, the Civil Works Administration, the Federal Emergency
Relief Administration, the National Youth Administration, and the
Civilian Conservation Corps, shall not constitute public service.
   (e) Employment in a function formerly performed by a public agency
other than a contracting agency and assumed by a contracting agency
where the employees who performed those functions are or were
transferred to or employed by the contracting agency without change
in occupation or position.
   (f) Civilian service as an employee or officer of an agency of the
government of the United States that performed functions the same as
or substantially similar to those performed by this state prior to
January 1, 1942, and that were transferred from the state to that
agency, including military service in any branch of the Armed Forces
of the United States performed by an individual on military leave of
absence from that federal employment, if all the following conditions
exist:
   (1) Prior to performing that federal service he or she was
employed by the state.
   (2) He or she was laid off from state service or would have been
laid off if he or she had not been absent in military service because
of the transfer of the functions of the state to an agency of the
United States government.
   (3) Subsequent to his or her layoff from state service he or she
was employed by the United States government in an agency performing
functions the same as or substantially similar to those of the state
agency from which he or she was laid off.
   (4) After his or her separation from federal service, he or she
was employed by a state agency.
   (5) In lieu of paragraphs (1), (2), and (3), the United States
government pays to the state or an agency of the state, funds equal
to contributions that would have been made by the state had the
member been in state service for the period of his or her public
service with respect to members who were not employed by the state
prior to entering that federal employment or whose state service
prior to entering that federal employment was terminated for reasons
other than the transfer of the function.
   (g) Employment in a district, prior to the time the district
became a subsidiary district of a city, of a person who was employed
by the city following the reorganization to render service to the
district and who became a member in that employment.
  SEC. 10.  Section 21021 of the Government Code is amended to read:

   21021.  "Public service" for the employee of a student body
organization, that is not a contracting agency, of a community
college, means the period of employment prior to becoming a member of
the permanent classified service of the district pursuant to Section
76060 or 88020 of the Education Code.
   The county superintendent of schools or superintendent of schools
of an independently contracting community college district shall draw
a requisition against the funds of the community college district
for an amount equal to the total employer contribution that would
have been requisitioned under Section 20617 had that service been
rendered in the employ of the community college district and the
employer rate and member compensation on the date of transfer had
been in effect throughout the period of service credited.
   The governing board may, at its discretion, establish a method of
recovering a portion of, or the total liability for, the amount so
requisitioned.
  SEC. 11.  Section 21023 of the Government Code is amended to read:

   21023.  (a) "Public service" with respect to a state member, other
than a university member, also means the following:
   (1) Time during which the member was a prisoner of war involving
the United States, plus the time, if any, during which a member was
hospitalized following his or her release from captivity for a
disabling wound, injury, or disease directly attributable to that
captivity but not to include hospitalization after the member's
honorable and permanent medical separation from the armed forces.
   (2) Time between the onset of the member's disabling wound,
injury, or disease, directly attributable to service in combat with
the armed forces during a war involving the United States, and the
date of the member's honorable and permanent medical separation from
the armed forces due to the disabling condition, if the member has a
permanent disability rating in excess of 50 percent, that percentage
having been determined under applicable federal law.
   (b) For the purposes of this section, a war involving the United
States exists in any of the following circumstances:
   (1) Whenever Congress has declared war and peace has not been
formally restored.
   (2) Whenever the United States is engaged in active military
operations against any foreign power, whether or not a war has been
formally declared.
   (3) Whenever the United States is assisting the United Nations, in
actions involving the use of the armed forces, to maintain or
restore international peace and security.
   (c) A member electing to receive credit for public service under
this section shall pay the contributions and interest required
pursuant to Section 21033.
   (d) This section shall apply to a member only if the member elects
to receive credit while he or she is a state member, other than a
university member, and he or she is credited with at least 10 years
of service as a state member, other than a university member, on the
date of the election.
   (e) The maximum public service credit that may be received
pursuant to this section is five years.
   (f) This section shall not apply to any member receiving military
retirement pay as described in Section 20896 or disability retirement
pay as described in Section 20897.
   (g) Except as provided in subdivision (f), this section shall
apply to a state member, other than a university member, who leaves
or has left employment with the state, subsequently meets or has
subsequently met the conditions specified in subdivisions (a) and
(b), and thereafter returns or thereafter has returned to service as
a state member, other than a university member, is not entitled to
receive the service credit pursuant to Section 20991 or 20997.
  SEC. 12.  Section 21023.5 of the Government Code is amended to
read:
   21023.5.  (a) "Public service" for purposes of this article also
means time served, not to exceed three years, as a volunteer in the
Peace Corps or AmeriCorps:  Volunteers In Service To America.
   (b) This section shall not apply to any contracting agency nor to
the employees of any contracting agency until the agency elects to be
subject to this section by contract or by amendment to its contract
made in the manner prescribed for approval of contracts.
   (c) Any member electing to receive credit for service under this
section shall make the contributions as specified in Sections 21050
and 21052.  This section applies to past and future service in the
Peace Corps or AmeriCorps:  Volunteers In Service To America.
  SEC. 13.  Section 21024 of the Government Code is amended to read:

   21024.  (a) "Public service" with respect to a local member, other
than a school member, also means active service with the Armed
Forces or the Merchant Marine of the United States, including time
during any period of rehabilitation afforded by the United States
government other than a period of rehabilitation for purely
educational purposes, and for six months thereafter prior to the
member's first employment by the employer under this section in which
he or she was a member.
   (b) Any member electing to receive credit for that public service
shall make the contributions as specified in Sections 21050 and
21052.  However, any eligible member who requests costing of service
credit between January 1, 2001, and December 31, 2003, may, instead
of making those contributions, make the payment calculated under this
article as it read on December 31, 2000, which payment shall be made
in the manner described in Section 21050.
   (c) The public service under this section shall not include
military service (1) in any period for which credit is otherwise
given under this article or Article 4 (commencing with Section
20990), (2) that is not continuous, or (3) to the extent that total
credit under this section would exceed four years.
   (d) Notwithstanding Section 21034, a member may select which of
two or more periods of continuous service entitles him or her to
receive public service under this section.
   (e) This section shall apply to a member only if he or she elects
to receive credit while he or she is in state service in the
employment of one employer on or after the date of the employer's
election to be subject to this section.
   (f) This section shall not apply to any contracting agency nor to
the employees of any contracting agency until the agency elects to be
subject to this section by amendment to its contract made in the
manner prescribed for approval of contracts or in the case of
contracts made after this section takes effect, by express provision
in the contract making the contracting agency subject to this
section.  The amendments to this section made during the second year
of the 1999-2000 Regular Session shall apply to contracts subject to
this section on January 1, 2001.
  SEC. 14.  Section 21027 of the Government Code is amended to read:

   21027.  (a) "Public service" with respect to a local member who
retired pursuant to this part before the effective date of the
election of his or her employer to be subject to Section 21024 also
means active service with the Armed Forces or the Merchant Marine of
the United States, including time during any period of rehabilitation
afforded by the United States government other than a period of
rehabilitation for purely educational purposes, and for six months
thereafter prior to the person's first employment by the employer
under this section in which he or she was a member.
   (b) Any retired person electing to receive credit for that public
service shall make the contributions as specified in Sections 21050
and 21052. However, any eligible member who requests costing of
service credit between January 1, 2001, and December 31, 2003, may,
instead of making those contributions, make the payment calculated
under this article as it read on December 31, 2000, which payment
shall be made in the manner described in Section 21050.
   (c) The public service shall not include military service (1) in
any period for which credit is otherwise given under this article or
Article 4 (commencing with Section 20990), (2) that is not
continuous, or (3) to the extent that total credit under this section
would exceed four years.
   (d) Notwithstanding Section 21034, a retired person may select
which of two or more periods of continuous service entitles him or
her to receive public service under this section.
   (e) This section shall apply to a retired person only if he or she
retired immediately following service as a local member, pursuant to
this part, and before the effective date of the election by his or
her employer to be subject to Section 21024.
   (f) The retirement allowance of a retired person who elects to
receive service credit pursuant to this section shall be increased
only with respect to the allowance payable on and after the effective
date of the election.
   (g) This section shall not apply to any contracting agency nor to
the employees of any contracting agency until the agency has elected
to be subject to Section 21024 and elects to be subject to this
section by amendment to its contract made in the manner prescribed
for approval of contracts or, in the case of contacts made after
January 1, 1988, by express provision in the contract making the
contracting agency subject to both Section 21024 and this section.
The amendments to this section made during the second year of the
1999-2000 Regular Session shall apply to contracts subject to this
section on January 1, 2001.
  SEC. 15.  Section 21029 of the Government Code is amended to read:

   21029.  (a) "Public service" with respect to a state member or a
school member or with respect to a retired former state employee or a
retired former school employee, who retired on or after December 31,
1981, also means active service, prior to entering this system as a
state member or as a school member, of not less than one year in the
Armed Forces of the United States, or, active service, prior to
entering this system as a state or school member, of not less than
one year in the Merchant Marine of the United States prior to January
1, 1950.  Public service credit shall not be granted if the service
described above terminated with a discharge under dishonorable
conditions.  The public service credit to be granted for that service
shall be on the basis of one year of credit for each year of
credited state service, but shall not exceed a total of four years of
public service credit regardless of the number of years of either
that service or subsequent state service.  A state member or a school
member or a retired former state employee or a retired former school
employee electing to receive a credit for that public service shall
have been credited with at least one year of state service on the
date of election or the date of retirement.
   (b) An election by a state member or a school member with respect
to public service under this section may be made only while the
member is in state, university, or school employment, and a retired
former employee shall have retired immediately following service as a
state member or as a school member.  The retirement allowance of a
retired former state employee or a retired former school employee,
who elects to receive public service credit pursuant to this section
shall be increased only with respect to the allowance payable on and
after the date of election.  For the purposes of this section, a
member as described in subdivision (d) of Section 20776, shall also
mean a former state employee or a former school employee, who retired
on or after December 31, 1981.
   (c) A member or retired former employee who elects to become
subject to this section shall make the contributions as specified in
Sections 21050 and 21052.
   (d) The board has no duty to locate or notify any eligible former
member who is currently retired or to provide the name
                                   or address of any such retired
person, agency, or entity for the purpose of notifying those persons.

  SEC. 16.  Section 21030 of the Government Code is amended to read:

   21030.  (a) "Public service" for purposes of this article also
means employment under a program sponsored by, and financed at least
in part by, the Comprehensive Employment and Training Act of 1973, as
amended.
   (b) Notwithstanding any other provision of law, a member electing
to receive credit for public service under this section shall make
the contributions as specified in Sections 21050 and 21052.  However,
any eligible member who requests costing of service credit between
January 1, 2001, and December 31, 2003, may, instead of making those
contributions, make the payment calculated under this article as it
read on December 31, 2000, which payment shall be made in the manner
described in Section 21050.
   (c) Benefits arising from service credited to a member under this
section shall become a liability of the employer for which the
service was rendered.
  SEC. 17.  Section 21031 of the Government Code is amended to read:

   21031.  (a) "Public service" also means employment by a
contracting agency before the effective date of its contract with the
board, and is limited to that portion of the service that the agency
does not provide in its contract for inclusion as prior service.
   (b) A member electing to receive credit for that public service
shall make the contributions as specified in Sections 21050 and
21051.  The election may be made at any time prior to retirement.
   (c) If the contracting agency subsequently amends its contract to
include a greater percentage of final compensation as prior service,
the electing member shall be refunded that portion of his or her
contributions made under this section as represents the additional
prior service percentage contracted for by the agency plus interest
at the crediting rate.
   (d) If the agency pays all or a portion of the normal
contributions required to be paid by a member, the contributions
required under this section shall be based upon the normal
contribution rate that would be applicable to that member if the
agency were not paying any normal contributions under Section 20690
or 20691.
   (e) This section shall not apply to any contracting agency until
the agency elects to be subject to the provision of this section by
amendment to its contract made in the manner prescribed for approval
of contracts, except an election among the employees is not required,
or, in the case of contracts made after March 1, 1982, by express
provision in the contract making the contracting agency subject to
the provisions of this section.  The amendments to this section made
during the second year of the 1999-2000 Regular Session shall apply
to contracts subject to this section on January 1, 2001.
  SEC. 18.  Article 6 (commencing with Section 21050) is added to
Chapter 11 of Part 3 of Division 5 of Title 2 of the Government Code,
to read:

      Article 6.  Service Credit Election and Cost Calculation

   21050.  An election by a member to receive credit for service
under this part, in addition to his or her current and prior service
credit, shall be effective only if accompanied by a lump-sum payment
or an authorization for payments, other than a lump-sum payment, in
accordance with regulations of the board.
   21051.  A member electing to receive credit for service subject to
this section shall contribute, in accordance with Section 21050, an
amount equal to the following:
   (a) The contributions the member would have made to the system for
the period for which current service credit is granted, assuming
that the rate of contribution under his or her employer's formula at
the rate age applicable to him or her at the beginning of his or her
first subsequent period of service in membership and his or her
compensation earnable on that date had applied to the member during
the period for which credit is granted.
   (b) The interest that would have accrued on those contributions if
they had been deposited at the beginning date of his or her first
subsequent period of service in membership, from that date until the
date of completion of payments.
   (c) If the member is authorized under Section 21050 to contribute
in other than a lump sum, interest on the unpaid balance of the
amounts payable under paragraphs (1) and (2), which interest shall
begin to accrue as of the date of the election to receive credit.
   The beginning date of the first subsequent period of service, for
purposes of computation of contributions and interest, shall be
deemed to be the end of the period of service credited for a member
who has no subsequent return to service.
   21052.  A member or retired former employee who elects to receive
service credit subject to this section shall contribute, in
accordance with Section 21050, an amount equal to the increase in
employer liability, using the payrate and other factors affecting
liability on the date of the request for costing of the service
credit.  The methodology for calculating the amount of the
contribution shall be determined by the chief actuary and approved by
the board.  A member or retired former employee electing to receive
service credit for service subject to Section 21076 or 21077 shall
pay the contributions as described.
   21053.  All contributions of a member under this article shall be
deemed to be and shall be administered as normal contributions.
   21054. Notwithstanding any other provision of law, a member or
retired member who elected to purchase military service credit under
Section 20124 or 21027 on or after January 1, 1999, and prior to
January 1, 2001, may, at any time prior to making the final payment
for the service credit, elect to have the cost of that service credit
recalculated pursuant to Section 21052.  If that cost as
recalculated under Section 21052 is less than the cost as originally
calculated, the member or retired member shall pay the lesser amount,
with credit for the payments previously made.  However, no refund
shall be payable to a member or retired member as a result of the
recalculation of cost pursuant to this section.
  SEC. 19.  The board shall inform members at least once in calendar
years 2001 and 2002, and in September 2003, that the right to request
costing of service credit under Section 21006, 21007, 21008, 21024,
21027, or 21030 of the Government Code, under the formulas applicable
prior to January 1, 2001, shall expire on December 31, 2003.
  SEC. 20.  Nothing in this act shall be construed to preclude the
application of Section 20160 of the Government Code to correct errors
or omissions related to the costing of service credit.
